Netherlands Company Formation

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100% foreign ownership is permitted with Netherlands company formation. A minimum of one shareholder and director is required. Corporate shareholders are permitted. A resident director is not required with Netherlands company formation.

The Netherlands has been ranked 10th by the World Economic Forum in their Global Competitiveness Report 2009-2010.

A Netherlands company accesses one of the world’s most extensive double tax treaty networks, allowing a company to minimise withholding tax on incoming dividends.

The Netherlands is a member of the European Union (EU) and is a reputable international trading jurisdiction. Netherlands is positively ranked as the world’s 6th least corrupt country, according to the 2009 Corruption Perceptions Index by Transparency International, a global measure of corruption amongst public officials and politicians. The Netherlands is also positively ranked as the world's 15th-freest economy, according to the 2010 Index of Economic Freedom report by the Heritage Foundation, a measure of freedom enjoyed in  business, trade, monetary, financial, investment and labour markets.

In its 2009 World Competitiveness Yearbook, the Switzerland-based IMD positively ranks the Netherlands as the world’s 10th most competitive economy. The ranking takes into account factors including economic performance, government efficiency, business efficiency and infrastructure.

Amsterdam ranks 18th in the Monocle Quality of Life Index. The index bases its ranking on factors like quality of housing, urban scale as well as amount of crime and the quality of education and healthcare.

Netherlands company formation is expensive because of high government registration fees and a minimum paid-up capital requirement of 18,000 Euros (US$24,700).

Following the Netherlands company formation, directors and shareholders details are available for public viewing at the Netherlands Trade Register.

The minimum corporate tax rate is 20% on the first 41,000 Euros (US$56,000) of profit. Profits exceeding 41,000 Euros are taxed at 26.9%. A Netherlands-resident company pays corporation tax on worldwide profit. Following Netherlands company formation, annual audited financial statements and an annual tax return must be submitted to the Dutch government.

According to the World Bank's Doing Business 2010 Survey, the Netherlands poorly ranks as the world's 30th easiest place to do business in. The survey measures factors including business start up procedures, time, cost and minimum capital required to start a business.

Forbes Tax Misery Index 2009 rated the Netherlands as havingthe 5th highest tax misery in the world.The index takes into account corporate income, employer social security, personal income, employee social security, wealth tax and VAT/sales. Forbes suggests the index can be used as a proxy to evaluate whether a country’s policy attracts or repels capital and talent.